As the major crude oil producers try to limit supply, the easing of coronavirus lockdowns is helping a slow recovery in fuel demand. Oil prices fell on Friday, but remained a five-month high.
Brent crude LCOc1 futures were down 52 cents, or 1.1%, at $44.38 a barrel by 0850 GMT, heading for a 0.9% weekly decline.
West Texas Intermediate (WTI) crude CLc1 futures were down 48 cents, or 1.1%, at $42.34 but on track for a weekly gain of about 0.9%.
According to a rumor Friday, after the steepest drop in record, the improving economic recovery in the eurozone was stalled this month , despite easing lockdowns in July and easing the pressure on demand.
Another sign of slowing recovery is India’s crude oil imports. It fell to its lowest level in July since March 2010 due to renewed coronavirus, lockdowns and refineries maintenance.
Demand is likely to be close to pre-pandemic levels in 2021, and as the rest of 2020 face the impacts of the second wave, there will be a tough challenge.
The OPEC + group estimates that excess in supply between May and July may be offset by cuts this month and beyond.